Homework answers / question archive / Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal B ? D $(106,000) S(116,000) $(86,000) $(144,000) 142,040 178,640 118,680 213, 120 $ 36,040 $ 62,640 $ 32,680 $ 69,120 7 years 6 years 6 years 5 years Required: 1

Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal B ? D $(106,000) S(116,000) $(86,000) $(144,000) 142,040 178,640 118,680 213, 120 $ 36,040 $ 62,640 $ 32,680 $ 69,120 7 years 6 years 6 years 5 years Required: 1

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Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal B ? D $(106,000) S(116,000) $(86,000) $(144,000) 142,040 178,640 118,680 213, 120 $ 36,040 $ 62,640 $ 32,680 $ 69,120 7 years 6 years 6 years 5 years Required: 1. Compute the project profitability Index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Proposal Project Profitability Index Rank Preference ? B ? D